Slow-moving inventory can be easy to ignore.
The products are still new. They may still generate occasional sales. Nothing is technically “wrong” with the merchandise, so pallets remain in the warehouse while the business focuses on faster-moving products.
But months can turn into years.
Eventually, yesterday’s slow-moving inventory can become tomorrow’s dead stock.
For manufacturers, brands, importers, distributors, retailers, Amazon sellers, and e-commerce businesses, identifying that inventory early can create more options.
Big Willy’s Wholesale purchases qualifying new slow-moving inventory, excess stock, surplus merchandise, overstock, discontinued products, closeouts, canceled-order inventory, Amazon/e-commerce merchandise, and other bulk general merchandise nationwide.
What Is Slow-Moving Inventory?
Slow-moving inventory is merchandise that continues to sell, but at a rate significantly below what the business originally expected.
Consider this example:
Inventory on hand: 30,000 units
Average monthly sales: 1,000 units
Current inventory position: 30 months of supply
Your company may not need to eliminate the SKU entirely.
But does it make sense to carry more than two years of inventory?
If you expect to need 8,000 units for future customers, the remaining 22,000 units could represent excess inventory that may be better sold through another channel.
Slow-Moving Inventory Is Different From Unsellable Inventory
A product does not need to be damaged or obsolete to become an inventory problem.
Some of the best closeout opportunities involve completely new merchandise that simply no longer fits the seller's inventory strategy.
A product might become slow-moving because:
- Demand was lower than forecast
- A major customer stopped purchasing
- Competition increased
- A newer model launched
- A retailer changed its assortment
- Packaging was updated
- The company purchased too much
- A seasonal selling window passed
- An Amazon listing lost ranking
- Marketing shifted toward another product
- The company decided to exit a category
The merchandise can remain perfectly good.
The problem is the quantity relative to demand.
Calculate How Many Months of Inventory You're Holding
One simple way to identify slow-moving stock is to calculate months of supply.
If you have 24,000 units and sell approximately 2,000 units per month, you have roughly 12 months of inventory.
That may be acceptable for some businesses.
For another company, carrying more than three or four months could be excessive.
The important question is:
How much inventory does your business realistically need to support expected demand?
Anything significantly above that level deserves a closer look.
The Longer You Wait, the Fewer Options You May Have
There can be advantages to addressing excess inventory while the merchandise is still current.
Waiting too long can introduce additional challenges.
Packaging may change.
A replacement product may launch.
Seasonality may pass.
Retail pricing may decline.
Marketplace listings may disappear.
Customer demand may continue falling.
The product that is merely slow-moving today could become substantially harder to sell later.
Manufacturers Should Review Finished-Goods Inventory
Manufacturers can accumulate slow-moving finished goods after production runs exceed actual demand.
Suppose you manufacture 50,000 units based on projected customer demand.
Twelve months later, 25,000 units remain.
If expected future demand is only another 8,000 units, holding all 25,000 may no longer make sense.
A wholesale buyer can evaluate the true excess portion while you retain enough inventory to continue servicing normal customers.
Distributors Should Look at Their Long-Tail SKUs
For distributors, excess inventory can hide inside a large assortment.
Three pallets of one slow-moving SKU may not attract much attention.
Neither may five pallets of another.
But when dozens of products are moving slowly, the combined inventory can consume significant warehouse capacity and capital.
Regularly reviewing aging inventory can reveal opportunities to consolidate those positions into a bulk closeout.
Amazon and E-Commerce Sellers Should Watch Inventory Velocity
E-commerce inventory can become slow-moving quickly.
A product that once sold hundreds of units per month may decline because of increased competition, rising advertising costs, ranking changes, listing restrictions, or shifting customer demand.
If you have thousands of new units remaining and no longer intend to aggressively sell the SKU, continuing to pay storage expenses may not be the best strategy.
Big Willy’s Wholesale evaluates qualifying Amazon and e-commerce inventory for bulk purchase.
What Types of Slow-Moving Inventory Does Big Willy’s Wholesale Buy?
We evaluate qualifying new consumer general merchandise across categories including:
- Household products
- Beauty & personal care
- Baby merchandise
- Pet supplies
- Kitchen & cookware
- Electronics
- Toys & games
- Apparel
- Footwear
- Outdoor merchandise
- Office & school products
- Cleaning supplies
- Storage & organization
- Seasonal merchandise
- Disposable food-service products
- Other consumer general merchandise
Our focus is new merchandise only. We do not purchase customer returns, used products, open-box merchandise, or reconditioned goods.
How Much Inventory Can You Submit?
Big Willy’s Wholesale is focused on commercial quantities.
We are interested in evaluating opportunities involving:
- Multiple pallets
- Hundreds of cases
- Thousands of units
- Large single-SKU positions
- Full truckloads
- Multiple truckloads
- Container quantities
- Multi-SKU closeouts
- Complete product-line inventories
Inventory can be located at your warehouse, distribution center, 3PL, fulfillment center, import facility, or manufacturing facility.
What Should You Send Our Buying Team?
Providing complete information helps us evaluate an opportunity more efficiently.
Whenever possible, send:
- Brand
- Product description
- SKU
- UPC
- Quantity available
- Case pack
- Number of cases
- Pallet count
- Product condition
- Product and packaging photos
- Warehouse city and state
- MSRP
- Normal wholesale price
- Asking price, if available
- Expiration or best-by dates when applicable
- Resale or channel restrictions
For multi-SKU opportunities, send the complete inventory spreadsheet.
Sell Slow-Moving Inventory While It Still Has Momentum
The best time to evaluate excess inventory may be before the product stops selling entirely.
If your company is carrying substantially more inventory than expected demand requires, separating the quantity you need from the quantity you do not can help you make a more informed decision.
Big Willy’s Wholesale is actively looking to purchase qualifying new slow-moving inventory, excess merchandise, surplus stock, overstock, discontinued products, closeouts, canceled orders, Amazon/e-commerce inventory, and other bulk general merchandise nationwide.
Inventory Submission: Submit Inventory to Big Willy’s Wholesale
Email: william@bigwillyswholesale.com
Phone: (213) 341-1011
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